Kadai paneer is one of my favorite paneer dishes. It has soft paneer cooked in spicy masala along with bell peppers and onions. It goes incredibly well with my rustic tandoori roti or soft garlic naan. This dish has a robust flavor which comes from the use of freshly ground spices like whole coriander seeds and red chilies!

kadai paneer in a red color wok with a wooden spatula with blue napkin in the background

The dish is called kadai paneer because it was cooked in a kadai, which is like a deep, round, thick bottom cooking pot used in Indian cooking.  Back in the days, dishes were named according to the cooking vessel in which they were cooked. Since this dish was made in a kadai, it was called kadai paneer.

But if you don’t have a kadai you can simply use a wok or any other pan. I did not make it in a kadai!

The flavor is in the fresh kadai masala!

The restaurant style taste comes from the use of freshly gound “kadai masala” which uses:

  • whole coriander seeds
  • dried red chilies
  • green cardamom
  • fennel seeds and
  • cloves

The spices are dry roasted until fragrant and then ground to a fine powder. The fresh masala makes this dish pop! During my recipe testing, I made this masala with various combinations like there was one with black peppercorns that made it too hot or the other with extra dried red chilies that made it super spicy. This combination and quantity work the best in my opinion, it’s perfectly balanced.

If you want, you can make a big batch of this and store it in an airtight container. That way you don’t have to do the extra step of making the fresh masala when making kadai paneer.

Other than the fresh kadai masala, what makes this kadai paneer restaurant-style is the addition of tomato paste, it adds a depth of flavor to the dish. The tiny bit of sugar helps in balancing the flavor. And I always prefer using fresh homemade paneer for this recipe, the one that you get here in the US is usually chewy and not up to the mark. Enjoy!

Dhungar Method (But it is optional)!

You can also use dhungar method to infuse smokey flavor to your kadai paneer. I have not done it here, but you may. For the dhungar method,  heat a piece of coal, place it in a bowl and then place that bowl in the middle of your kadai paneer pan.

Pour ghee over hot coal. You will see fumes coming out of it, immediately cover the pan with a lid. Let it stay covered for 10 minutes until the sabzi gets infused with the smokey flavor. Do not leave it for way too long else it will become very smokey.

A lot of dhabas (streetside restaurants) in India do smoke their paneer dishes for that extra flavor.

Let’s make restaurant-style Kadai Paneer

  1. Prepare the fresh kadai masala

Dry roast the spices on medium heat for 3 to 4 minutes. I have used coriander seeds, fennel seeds, green cardamom, cloves and dried red chilies. Once roasted, transfer them to a spice grinder and grind to a fine powder.

whole spices like coriander seeds, chilies in a kadai
finely ground masala in a grinder
  1. Then work on the masala base

Which is made of freshly chopped onion, ginger garlic paste, green chilies, and tomatoes. I also like adding tomato paste for extra flavor.

chopped onions with chilies and ginger garlic paste in a pan
chopped tomatoes with onions in a pan
  1. Dry spices go in next!

Now is the time to add the prepared kadai masala along with garam masala and some Kashmiri red chili powder for color. I also like adding ginger juliennes for extra flavor.

masala paste with ground spices in a pot
masala with ginger juliennes in it
  1. Stir in the paneer and peppers

Once the spices are cooked, add some water, cream, salt and sugar and then add the paneer and bell peppers. You want the peppers not completely cooked, so cover and cook until they are slightly softened. Finish with kasuri methi!

paneer and bell peppers added to a curry
kasuri methi being added to a curry

Storage and Reheating It

Store in an airtight container in the fridge and eat within 2-3 days. I do not like eating paneer dishes beyond that time frame. The sauce will significantly thicken in the fridge. You can add some cream or butter while reheating in a pan (or microwave) but that’s optional. I usually don’t add anything- it’s still saucy enough to be enjoyed with naan.

kadai paneer in a red color wok with a wooden spatula with blue napkin in the background
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kadai paneer in a red color wok with a wooden spatula with blue napkin in the background
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4.97 from 134 votes

Kadai Paneer (Easy, Restaurant-Style)

By Manali Singh
Indian Cottage Cheese and bell peppers are cooked in freshly ground spicy masala! Kadai Paneer is one of the most popular Indian paneer recipes and is best enjoyed with naan or roti!
Prep Time: 15 minutes
Cook Time: 25 minutes
Total Time: 40 minutes
Servings: 4

Ingredients 

Kadai Masala

  • 2 tablespoons coriander seeds
  • 2 dried red chilies
  • 4 green cardamom
  • 1 teaspoon fennel seeds
  • 3 cloves

Kadai Paneer

  • 1 tablespoon butter, unsalted
  • 1 tablespoon oil, 15 ml , I used avocado oil
  • 1 medium red onion, 150 grams , finely chopped
  • 1 green chili, sliced
  • 2 teaspoons ginger garlic paste
  • 3-4 medium tomatoes, 450 grams , finely chopped
  • 1 tablespoon tomato paste, optional
  • ¼ teaspoon garam masala
  • ¾ teaspoon kashmiri red chili powder
  • 1 inch ginger, julienned, divided
  • ½ cup water, 120 ml
  • 2 tablespoons heavy cream, 30 ml
  • ¾ teaspoon salt, or to taste
  • 1 teaspoon sugar
  • 1 large green bell pepper (capsicum), cut into 1-inch pieces
  • 225 grams paneer, cubed, if using store-bought paneer soak it in warm water for 20-25 minutes before using
  • 1 teaspoon kasuri methi, dried fenugreek leaves
  • 1 & ½ tablespoons cilantro, chopped, to garnish

Instructions 

Make the Kadai Masala

  • To a small kadai or pan on medium heat, add 2 tablespoons coriander seeds, 2 dried red chilies, 4 green cardamom, 1 teaspoon fennel seeds, and 3 cloves. Roast the spices for 3 to 4 minutes stirring constantly until fragrant.
  • Remove kadai from heat and transfer the roasted spices to a spice grinder. Let it cool down a bit and then grind it to a fine powder. Set aside. You can also make this kadai masala in advance and store it.

Make the Kadai Paneer

  • In a large kadai or any other pan, now melt 1 tablespoon butter with 1 tablespoon oil on medium heat. Add 1 medium red onion (chopped) and sauté for 3 minutes until softened. Then add 1 green chili (sliced) and 2 teaspoons ginger garlic paste and sauté for another 1 to 2 minutes.
  • Then add 3-4 medium tomatoes (chopped) and 1 tablespoon tomato paste. Mix and cook for around 6 minutes until tomatoes are really soft.
  • Then add 3 to 4 teaspoons of the kadai masala that you prepared earlier (or add the whole thing if you like it spicy). Also add ¼ teaspoon garam masala, and ¾ teaspoon Kashmiri red chili powder. Add half of the ginger juliennes (prepared from 1-inch ginger). Stir the spices and cook for 30 seconds.
  • Now, add ½ cup water and stir. Add 2 tablespoons heavy cream, ¾ teaspoon salt and 1 teaspoon sugar and mix. Cook for one minute.
  • Add in 225 grams paneer (cubed) and 1 large green bell pepper (cut into 1-inch pieces) and mix. Cover the pan or kadai with a lid and cook for 5 to 6 minutes on medium heat until bell peppers are slightly softened. You only want them half cooked here.
  • Crush 1 teaspoon kasuri methi between your palms and add to the pan. Garnish with remaining half of the ginger juliennes and 1 & ½ tablespoons cilantro (chopped). Serve kadai paneer with naan or paratha.

Video

Notes

To make this Kadai Paneer spicier
  1. Use double the amount of red chilies while making the kadai masala.
  2. Use the entire kadai masala in the recipe. I have used 3 to 4 teaspoons of the masala and was left with some.

Nutrition

Calories: 311kcal, Carbohydrates: 15g, Protein: 10g, Fat: 24g, Saturated Fat: 12g, Cholesterol: 54mg, Sodium: 565mg, Potassium: 425mg, Fiber: 4g, Sugar: 6g, Vitamin A: 1355IU, Vitamin C: 50.8mg, Calcium: 326mg, Iron: 1.4mg

Nutrition information is automatically calculated, so should only be used as an approximation.

Additional Info

Course: Main Course
Cuisine: Indian
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209 Comments

  1. 5 stars
    Made this recently, turned out to be very good. Whenever I have to cook, this is the website to go to for me. Thank you Manali.

    Reply

    1. Hi Anna, sorry it turned out bitter, I am not sure what happened since there’s nothing in the recipe to make it bitter hmm, if you find it spicy you can always add more cream

      Reply

    1. kingsford brand, you can find it at grocery stores where they have bbq stuff, make sure it’s not the self ignited one

      Reply

  4. I made it the first time and it was amazing however I doubled the recipe the second time and now it’s too watery. Are you sure 1 cup of water is ok?

    Reply

    1. Hi Gina, just cook it for some more time, water will evaporate and it should be fine. not every recipes doubles the same way. I have only tested and made this recipe as written in the recipe card. Sometimes when we double the water and spices they become too much so maybe that’s what happened. Hopefully cooking it for 5 more minutes or low-medium heat should fix it.

      Reply

      1. 5 stars
        Thanks Manali. It was too watery so I cooked it on high for an extra 10-15 mins and it thickened up nicely 😊. I will put less water in next time. Many thanks 🙂

  5. Is Kadhai Paneer similar to Shahi Paneer? Of all the Paneer recipes I never see this one posted. And it’s my favorite.
    Is Kadhai Paneer very spicy or is it on the mild side–or medium heat? I can’t do Vindaloo because it’s too hot for me.

    Reply

    1. Hi Kiki, shahi paneer and kadai paneer are different. shahi paneer is more creamy and on the sweeter side, kadai paneer is little on the spicier side with whole spices that are used. My recipe however isn’t too spicy, it’s mild to medium so you can try!

      Reply

  7. 5 stars
    I follow this recipe as a baseline and modify it everytime. Sometimes I add pineapple and sub the water for pineapple juice with a bit of Arrowroot which give it a thick sauce. I’ve done the same. With mango chunks. I omit the cream. Thank you for the amazing recipe.

    Reply

  10. Hello,

    I am going to be using store bought paneer. Will adding it into the pot for 5-6 minutes in the pot with the bell pepper harden it again or do you recommend adding in bell pepper first and then in the last 2 minutes add in the store bought paneer?

    Reply

  12. 5 stars
    Love this recipe pls tell me in what other Currys can I use the kadai masala thx u for sharing

    Reply

  15. 5 stars
    I tried this today, turned out lovely 🙂 And it is not too complicated, so perfect for a lazy evening! Thank you again for a perfect recipe Manali.

    Reply

  16. 5 stars
    This was the second recipe I tried and I loved it that it turned out so well. I’ve become more confident of my culinary skills, thanks to your recipes.
    TYSM!

    Reply